As our society gets busier, it’s been increasingly important to automate several aspects of our lives. One of the first areas to be automated was the payment of monthly bills and for many, this is an essential system that helps them avoid late payments. However, there are a few dangers that are associated with auto bill pay programs that should be discussed. By keeping these points in mind, you can use auto bill pay options to your advantage, without having to worry about additional problems.
Auto Bill Payment Programs - are they for you?
The first major concern is a lack of funds. If you don’t have a reliable income that is always deposited on time, you can end up with late bills, angry creditors and a real problem on your hand. If you are using a checking account for your auto bill pay, it is vital to make a note of when your payments are due and then take the necessary steps to ensure that you will have more than enough to take care of the bills that you owe for that month. This is also a problem for those using a credit card, especially if they get too close to their limit.
Next up, there is a big concern over hidden fees and charges that you may not catch. If you don’t get paper bills, or if you don’t take the time to read your electronic statement, you may end up paying too much and you’ll never be the wiser. The best example in this case would be a phone bill that does not have a set amount for long distance. This can fluctuate from month to month and if you’re not paying attention, you can easily end up with a bill that is three times the norm or more, and you’ll have to come up with the difference to make sure your other bills are paid.
Other companies may tack on extra fees, or you may be charged for each transaction. Always take the time to read the fine print before getting involved with auto bill pay systems and make sure that you are completely aware of what you’ll end up paying every month by keeping tabs on your statement.
The last major problem facing users of auto bill pay programs is security. It is vital to go with a program that provides top notch security and data protection. You don’t need that payment information being broadcast across the net, and all too often, this can happen. Hackers are an issue, especially now that so much sensitive information is available. If you are not sure about the level of security for the auto bill payment service that you are using, it is best to find a service that you can trust.
Auto bill pay can be incredibly helpful, but as with most things in life, there is a downside. However, by keeping these points in mind and by staying diligent on reading your statements, you can make it work for you.
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Originally posted 2008-10-29 06:55:32. Republished by Old Post Promoter
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Tags: auto bill pay, auto bill pay programs, bill pay, checking account, credit card, creditors, data protection, electronic statement, extra fees, hidden fees, late payments, long distance, necessary steps, norm, paper bills, paying attention, security, tabs, three times, transaction charges
I think one of the biggest concerns with auto-paid bills is that you forget you are paying them. Especially with non-essentials. Nexflix, for example. If you have payments for things like these coming out of your account on auto-pay you might not realize how much they actually add up to.
Good point Tom… We agree.